In Techland, from 1990 to 2020, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to S100,000 would have led to a doubling of real GDP per worker, from S40,000 to S80,000. However, not only did physical capital per worker increase from $25s,000 to s100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. What share of the annual growth rate of real GDP per capita was attributable to higher total factor productivity? O 20 O 9% O8.75% 6.5%
In Techland, from 1990 to 2020, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to S100,000 would have led to a doubling of real GDP per worker, from S40,000 to S80,000. However, not only did physical capital per worker increase from $25s,000 to s100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. What share of the annual growth rate of real GDP per capita was attributable to higher total factor productivity? O 20 O 9% O8.75% 6.5%
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 34P: Say that the average worker in Canada has a productivity level of 30 per hour while the average...
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